Tags: Dudley | New York | Federal Reserve | Supervision Staff

Dudley Defends Integrity of New York Fed Supervision Staff

Thursday, 02 Oct 2014 01:46 PM

William C. Dudley, president of the Federal Reserve Bank of New York, defended his bank-supervision staff following allegations that they had been too deferential to large financial firms.

“I completely stand behind the integrity and work of our supervision staff,” he said after a speech in New York. “They are operating completely in the public interest.”

Dudley said there has been a “significant reorganization” following a report commissioned by the regional Fed bank, and that “improving supervision has been and remains an ongoing priority for me.”

The radio program “This American Life” last week released the transcript of a broadcast that included excerpts of conversations it said were secretly recorded by Carmen Segarra, a former New York Fed bank examiner who was fired in 2012, with some of her colleagues and her supervisor.

In the transcript, Segarra described how she felt that her Fed colleagues were afraid of Goldman Sachs Group Inc. and handled it with kid gloves.

“I don’t think anyone should question our motives and what we are trying to accomplish,” Dudley said in defense of his institution. “Examiner independence is completely paramount.”

Dudley volunteered his comments after a speech about efforts to overhaul the London Interbank Offered Rate, a series of benchmarks for $300 trillion in financial securities worldwide, which has been at the center of official inquiries since 2008.

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William C. Dudley, president of the Federal Reserve Bank of New York, defended his bank-supervision staff following allegations that they had been too deferential to large financial firms.
Dudley, New York, Federal Reserve, Supervision Staff
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2014-46-02
Thursday, 02 Oct 2014 01:46 PM
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